How much debt have you paid off?: $200,000
What was it for?: Taxes and credit card debt
From deciding to become debt-free to making the last payment, how long did it take you?: 2 years
What age did you take on your first debt, and how old are you now?: 27 and I’m now 50
Did you do it alone or as a family?: Alone
Did you pay off debt from your regular income, take on extra work, or change jobs to speed it up?: From my regular income
Did you sell anything or receive cash gifts to contribute towards your debt payoff?: Sale of house
What people, books, websites, podcasts, budgeting tools, debt trackers and resources helped you?: The Barefoot Investor (Australian) and The Budget Mom (American)
Did you keep an emergency fund while you paid off debt? If so, how much?: Yes, AUD $10,000
Did you have any setbacks along the way, and how did you overcome them?: Yes. Self-doubt, the inability to be disciplined, and peer pressure. Thinking of the alternatives spurred me on to stick to my path.
What tips/hacks could you share?: Starting small and keeping going are the key factors; not being deterred by societal pressure and finding like-minded friends helps.
Was there a structure to your debt payoff? i.e. paying smallest to largest, or highest interest rate to lowest?: Smallest debt and highest interest rates were the first targets.
How did you stay motivated, and what was the most challenging part of paying off your debt? Thinking of the alternatives kept me motivated. It was challenging to walk a different path from others and to say no to many material possessions.
How did you celebrate making your final payment?: I didn’t really celebrate - I just kept going!
Was getting out of debt worth it, and what have you learned about yourself?: Absolutely worth it. I have learned that it is possible to change your situation.
Will you ever go back into debt again?: Never!